[Analytical Perspectives]
[Crosscutting Programs]
[5. Research and Development]
[From the U.S. Government Printing Office, www.gpo.gov]



[[Page 45]]

 
                       5. RESEARCH AND DEVELOPMENT

  The U.S. economy is the largest in the world, and has been growing 
faster than any other G-7 industrialized nation. In large measure, the 
U.S. economy owes its strength to its willingness to build innovation 
capacity through the creation and growth of a world-class science and 
technology research enterprise and a high-quality scientific and 
technical education infrastructure. The relationship between support for 
science and economic growth is well documented. Investments in basic 
research lead to knowledge breakthroughs that fuel innovation, drive 
productivity, grow the economy, and improve our understanding of the 
world. Economists estimate that as much as half of post-World War II 
economic growth is directly due to technological progress fueled by 
research and development (R&D).
  Economic payoffs from research come in the form of process and product 
innovations that reduce the costs of production, lower product prices, 
and result in new and better products and services. Consumers ultimately 
benefit from less expensive, higher quality and more useful products and 
services, and of course, from earnings accruing to innovative companies. 
Today's transforming technologies and most popular consumer items have 
deep roots in basic and applied research.
  To sustain the Nation's economic competitiveness, the President, in 
last year's State of the Union address, called for a long-term vision to 
strengthen Federal support for the Nation's innovation enterprise in an 
integrated package of investments and policies called the American 
Competitiveness Initiative (ACI).


               I.  THE AMERICAN COMPETITIVENESS INITIATIVE

  The President's 2008 Budget maintains a strong commitment, through the 
ACI, to invest in basic research areas that advance knowledge and 
technologies used by scientists in nearly every field. Through the ACI, 
the President plans to double, over 10 years, investment in innovation-
enabling research at three Federal agencies--the National Science 
Foundation (NSF), the Department of Energy's (DOE's) Office of Science, 
and the Department of Commerce's National Institute of Science and 
Technology (NIST) laboratories.
  In 2008, the second year of the American Competitiveness Initiative, 
President Bush proposes $11.4 billion total for NSF, DOE's Office of 
Science, and NIST laboratories, an overall funding increase of $764 
million, or 7.2 percent, above his 2007 Budget of $10.7 billion. To 
reach doubling within ten years, overall annual increases will average 
roughly seven percent.

[[Page 46]]

------------------------------------------------------------------------

                          Research Agencies in the American Competitiveness Initiative
 
 
 
The National Science Foundation is the primary source of support for academic research in the physical sciences,
 funding basic research in areas such as nanotechnology, advanced networking and information technology,
 physics, chemistry, materials science, mathematics, and engineering. It also is well regarded for funding
 nearly all of its research through a competitive, peer-reviewed process. The increase in NSF funding will
 support many more researchers, students, post-doctoral fellows and technicians contributing to the innovation
 enterprise.
 
The Department of Energy's Office of Science supports grants and infrastructure for a wide range of basic
 research related to economically significant innovations including nanotechnology, biotechnology, high-end
 computing and advanced networking, and energy technologies. The 2008 Budget increases funding for both research
 and cutting edge facilities in these critical mission areas, such as an expansion in the number of bio-energy
 research centers, major growth in the United States' contribution to the international fusion energy project
 known as ITER, expanded supercomputing facilities and related research, and design or construction activities
 for world-leading next generation light sources.
 
The Department of Commerce's National Institute of Standards and Technology invests in technological innovation
 through research and standards development. These investments will improve nanotechnology manufacturing
 capabilities; expand NIST's neutron facility to aid in characterizing novel materials in high-growth research
 fields; construct new, high-performance laboratories at NIST's Boulder, Colorado facility; and improve our
 understanding of quantum information science that has the potential to dramatically improve computer processing
 speeds and enable more secure communications.
 

------------------------------------------------------------------------

                                     

             II.  IMPROVING THE PERFORMANCE OF R&D PROGRAMS

  R&D is critically important for keeping our Nation economically 
competitive, and it will help solve the challenges we face in health, 
defense, energy, and the environment. Therefore, every Federal R&D 
dollar must be invested as effectively as possible.

                         R&D Investment Criteria

  The Administration continues to improve the effectiveness of the 
Federal Government's investments in R&D by applying transparent 
investment criteria in analyses that inform recommendations for program 
funding and management. R&D performance assessment must be done with 
care. Research often leads scientists and engineers down unpredictable 
pathways with unpredictable results. This outcome can require special 
consideration when measuring an R&D program's performance against its 
initial goals.
  With this in mind, the Administration is improving methods for setting 
priorities based on expected results, and is asking agencies to apply 
specific criteria that programs or projects must meet to be started or 
continued and supply clear milestones for gauging progress and improved 
metrics for assessing results.
  As directed by the President's Management Agenda, the R&D Investment 
Criteria accommodate the wide range of R&D activities, from basic 
research to development and demonstration programs, by addressing three 
fundamental aspects of R&D:
     Relevance--Programs must be able to articulate why they are 
          important, relevant, and appropriate for Federal investment;
     Quality--Programs must justify how funds will be allocated 
          to ensure quality; and
     Performance--Programs must be able to monitor and document 
          how well the investments are performing.
  In addition, R&D projects and programs relevant to industry are 
expected to apply criteria to determine the appropriateness of the 
public investment, enable comparisons of proposed and demonstrated 
benefits, and provide meaningful decision points for completing or 
transitioning the activity to the private sector.
  As part of the President's Management Agenda's Budget and Performance 
Integration initiative, the Administration uses the Program Assessment 
Rating Tool (PART) to consistently assess the effectiveness of programs. 
A section of the PART specifically addresses the assessment of R&D 
program management and performance and is aligned with the R&D 
Investment criteria. In the last five years, agencies completed 977 PART 
assessments, of which 121 were for R&D programs. The results of these 
PART assessments may be found on the web at www.expectmore.gov.

[[Page 47]]

  Performance assessments help policy makers identify those programs 
that are the most effective and worthy of funding; however, the 
Administration does not allocate funding levels and initiate management 
reforms strictly by formula or based solely on PART results. While 
programs rated Effective are typically favored for additional funding 
over related programs that do not perform as well, PART ratings do not 
automatically relate to specific funding levels. For instance, a program 
rated Effective that has achieved what it set out to do may have its 
funding reduced. On the other hand, a program rated Ineffective might 
receive more money to correct a deficiency that would help it become 
more effective. The PART provides information that leads to more 
informed decisions.


                            Research Earmarks

  President Bush has called on Congress to reform the earmark process, 
proposing a series of reforms that include full disclosure for each 
earmark and cutting the number and cost of all earmarks by at least 
half. Consistent with this effort, the Administration is continuing its 
strong support for awarding research funds based on merit review through 
a competitive process refereed by scientists themselves. Such a system 
has the best prospects for ensuring that the top research is supported. 
Research earmarks--in general the assignment of money during the 
legislative process for use by a specific organization or project--are 
counter to a merit-based competitive selection process. Earmarks signal 
to potential investigators that there is an acceptable alternative to 
creating quality research proposals for merit-based consideration. Such 
an alternative can be an ineffective use of taxpayer funds.
  Unfortunately, the practice of earmarking funds to colleges, 
universities, and other entities for specific research projects has 
expanded dramatically in recent years. Some argue that earmarks help 
spread the research money to states or institutions that would receive 
less research funding through other means. The Chronicle of Higher 
Education has reported that this is not the main role earmarks play. 
Often only a minor portion of academic earmark funding goes to the 
states with the smallest shares of Federal research funds.
  Some proponents of earmarking assert that earmarks provide a means of 
funding unique projects that would not be recognized by the conventional 
peer-review process. To address this concern, a number of research 
agencies have procedures and programs to reward ``out-of-the-box'' 
thinking. For example, the Defense Advanced Research Projects Agency, 
within the Department of Defense (DOD), seeks out high-risk, high-payoff 
scientific proposals, the National Institutes of Health has established 
a similarly focused ``Pioneer Award,'' and program managers at the NSF 
set aside a share of funding for higher-risk projects in which they see 
high potential.
  Earmarks that are outside of an agency's mission can detract from an 
efficient and effective Federal effort on behalf of taxpayers. For 
instance, the Congress directed DOD to fund research on a wide range of 
diseases including diabetes, neurofibromatosis (a genetic disorder of 
the nervous system), and childhood cancer. Congressional adds in DOD's 
budget for medical research projects totals about $500 million in 2007 
alone.

[[Page 48]]

While research on these diseases is very important, these diseases are 
generally not unique to the U.S. military and the research can be better 
selected, carried out and coordinated within civil medical research 
agencies, without disruption to the military mission. At the same time, 
intrusion of earmarks into the peer-review processes of civilian medical 
research agencies would have a significant detrimental impact on funding 
the most important and promising research.
  Earmarks that divert funding from a merit-based process undermine 
America's research productivity. The Administration commends Congress 
for taking measures to protect NSF and the National Institutes of Health 
from this practice, which is an approach that should be followed 
throughout the R&D programs.

                                     

          III. PRIORITIES FOR FEDERAL RESEARCH AND DEVELOPMENT

  The 2008 Budget requests $143 billion for Federal R&D funding, and 
targets key research investments within agencies, in particular, the 
three ACI agencies: NSF, the DOE's Office of Science, and the NIST 
laboratories. (Table 5-1 provides details by agency).

                       Multi-Agency R&D Priorities

  The 2008 Budget continues to target important research investments 
that must be coordinated across multiple agencies. The Administration 
will continue to analyze other areas of critical need that could benefit 
in the future from improved focus and coordination among agencies.
  Combating Terrorism R&D: A robust R&D effort continues to be a key 
asset in advancing technologies in support of the President's national 
strategy for homeland security. Though there have been numerous 
achievements over the past four years, many challenges remain. A number 
of these challenges are being addressed through multi-agency research 
efforts that are coordinated through the National Science and Technology 
Council (NSTC) and other inter-agency forums.
  In 2006, key multi-agency R&D efforts made significant progress 
towards improving the Nation's counterterrorism capability. Using the 
2006 Administration R&D budget priorities memorandum as a guide, 
agencies, for example:
    improved radiation portal monitors with the ability to 
          discern threatening sources of radiation from non-threatening 
          sources;
    advanced technology to meet new international electronic 
          passport standards that enables biometric screening of 
          individuals entering the country;
    developed standards for technologies that enable the 
          detection and interception of nuclear and radioactive material 
          before it enters the U.S.;
    developed and established standard methodologies and 
          practices for the sampling and detection of biological agents; 
          and
    developed rapid diagnostics and next generation vaccines.
  The 2008 Budget provides continued support for these and many other 
R&D related to combating terrorism, including: pursuing stand-off 
detection and imaging capabilities to locate and identify nuclear threat 
materials at a distance; advancing cargo screening capabilities to 
recognize and expedite safe cargo while securing the borders against 
other entries; improving the capabilities and implementation planning of 
biometric systems; initiating the 2008-2012 R&D plan for high-
consequence foreign animal diseases; and focusing on critical medical 
countermeasures that do not have a pre-existing market to stimulate 
their development.
  Networking and Information Technology R&D: The Budget provides $3 
billion for the multi-agency Networking and Information Technology 
Research and Development (NITRD) Program, which plans and coordinates 
agency research efforts in high-end computing systems, cyber security, 
large-scale networking, software development, high-confidence systems, 
information management, and other information technologies. The agencies 
involved in this program coordinate efforts to accelerate research 
advancement in information technology, upon which every economic sector 
now depends.
  In 2006, agencies participating in high-end computing R&D continued to 
make significant progress in implementing the recommendations contained 
in the Federal Plan for High-End Computing. The 2008 Budget continues 
the path toward the development of petascale systems for science by both 
DOE and NSF. Relevant agencies will continue to conduct research in 
highly scalable systems software and applications to ensure that Federal 
investments in high-end computing achieve maximal impact.
  Participating agencies also completed and published the Federal Plan 
for Cyber Security and Information Assurance R&D in 2006, and are now 
undertaking the development of the roadmap for addressing any identified 
R&D gaps as recommended in the Plan.
  In 2007, participating agencies will undertake the development of a 
Federal Plan for Advanced Networking R&D, analogous to the recent Plans 
for High-End Computing and for Cyber Security and Information Assurance 
R&D. The Federal Plan for Advanced Networking R&D will provide a 
strategy for addressing current and future networking needs of the 
Federal government in support of science and national security missions, 
and provide a process for developing a more detailed roadmap to guide 
future multi-agency investments in advancing networking R&D. Reports and 
general information about NITRD are available at www.nitrd.gov/.

[[Page 49]]

  Nanotechnology R&D: The Budget provides $1 billion for the multi-
agency National Nanotechnology Initiative (NNI). The NNI focuses on R&D 
that creates materials, devices, and systems that exploit the 
fundamentally distinct properties of matter as it is manipulated at the 
atomic and molecular levels. The results of NNI-supported R&D are 
already leading to breakthroughs in disease detection and treatment, 
manufacturing at the nanoscale level, environmental monitoring and 
protection, energy production and storage, and creating electronic 
devices that have even greater capabilities than those available today. 
Research opportunities cover a similarly broad spectrum. Advances that 
will be foundational for all aspects of nanotechnology R&D in particular 
include: instrumentation for characterizing nanoscale materials in the 
laboratory, in the body, and in the environment; and computational 
research to model and predict properties at the nanoscale, for designing 
novel materials, and for determining their behavior under various 
conditions and environments.
  Guided by the NNI, participating agencies will continue to support 
discovery, development and application of nanotechnology through 
investigator-led fundamental and applied research; multidisciplinary 
centers of excellence; education and training of nanotechnology 
researchers, teachers, workers, and the public; and infrastructure 
development, including user facilities and networks that are broadly 
available to support research and innovation. In addition, agencies 
continue to maintain a focus on the responsible development of 
nanotechnology, with attention to the human and environmental health 
impacts, as well as ethical, legal, and other societal issues. Reports 
and general information about the NNI are available at www.nano.gov/.
  Climate Change R&D: The 2008 Budget for the Climate Change Science 
Program (CCSP) continues to support the implementation of the CCSP 
Strategic Plan, which was released in July 2003. The 13 departments and 
agencies that participate in the CCSP coordinate preparation of the 
budget and program implementation. During 2008, the CCSP will continue 
research into important scientific uncertainties and preparation of a 
series of Synthesis and Assessment reports. Working within the 
overarching priorities defined in the Strategic Plan, the CCSP's 
interagency coordination and integration efforts will give particular 
emphasis in 2008 to the following activities: abrupt climate change; 
integrated Earth system analysis; coping with drought through research 
and regional partnerships; integration of water cycle observations, 
research and modeling; carbon cycle research integration; aerosol 
forcing and interactions with clouds and non-carbon dioxide trace gases; 
impacts of climate variability and change on ecosystem productivity and 
biodiversity; and interactions on land use/land cover change and 
climate.
  The program expects to receive input from the National Research 
Council under the terms of a continuing advisory agreement. This advice 
will include findings and recommendations on the process for evaluating 
progress toward the five goals in the CCSP Strategic Plan, and a 
preliminary assessment of progress made toward the program's goals. The 
CCSP will continue to track deliverables and milestones for each of its 
programs in order to assess overall performance. Additional detail on 
individual agency activities will be provided in the Administration's 
2008 edition of Our Changing Planet. Reports and general information 
about the CCSP are available on the program's website: 
www.climatescience.gov/.
  The Climate Change Technology Program (CCTP) continues to provide 
strategic direction, planning, and analysis to help coordinate and 
prioritize activities within the portfolio of Federally funded climate 
change technology R&D consistent with the President's National Climate 
Change Technology Initiative (NCCTI). In 2005, the CCTP published a 
Vision and Framework for Strategy and Planning and released a draft 
Strategic Plan for review by the scientific community and the public. In 
2006, the CCTP addressed the nearly 300 comments received and published 
a final Strategic Plan. The CCTP has also identified within its 
portfolio a subset of NCCTI priority activities, defined as discrete R&D 
activities that address technological challenges, which, if solved, 
could advance technologies with the potential to dramatically reduce, 
avoid, or sequester greenhouse gas emissions. In 2008, CCTP's focus will 
be on implementing the Strategic Plan, which lays out a series of next 
steps. Reports and general information about the CCTP are available on 
the program's website: www.climatetechnology.gov/.
  The CCSP and CCTP will continue to coordinate implementation of 
relevant climate change provisions in the 2005 Energy Policy Act as 
appropriate.
  Ocean Research: The 2008 Budget supports ocean and coastal research as 
outlined in the recently released report Charting the Course for Ocean 
Science in the United States for the Next Decade: An Ocean Research 
Priorities Plan and Implementation Strategy. Developed by the National 
Science and Technology Council's Joint Subcommittee on Ocean Science and 
Technology, plan implementation will deploy key components of an ocean 
observing system that can better and more accurately describe actual 
conditions, enhance our understanding and capability to forecast ocean 
processes and phenomena, and provide scientific support for ecosystem-
based management. These three overarching goals represent tremendous 
potential for ocean science, as well as for maintaining U.S. leadership 
in ocean technology and enhancing U.S. competitiveness. These goals are 
supported by 20 separate national ocean research priorities, established 
with extensive community input and oriented around the most compelling 
issues of interaction between society and the ocean. The Joint 
Subcommittee on Ocean Science and Technology will coordinate this multi-
agency research into key aspects of the oceans, coasts and Great Lakes 
and work closely with the other coordinating bodies of the President's 
Ocean Action Plan.
  Hydrogen R&D: In 2006, the Hydrogen R&D Interagency Task Force led 
coordination among nine agen

[[Page 50]]

cies in hydrogen-related manufacturing and innovation, safety, codes and 
standards, and fundamental research on fuel cells, hydrogen production, 
and hydrogen storage. The Task Force improved and updated its web portal 
(www.hydrogen.gov) for hydrogen and fuel cell information. Additionally, 
the Task Force works with the International Partnership for the Hydrogen 
Economy, which coordinates hydrogen research among 15 nations 
representing two thirds of global energy consumption.
  DOE will continue to lead the President's Hydrogen Fuel Initiative to 
accelerate the worldwide availability and affordability of hydrogen-
powered fuel cell vehicles and the infrastructure to support them. The 
initiative focuses on research to advance hydrogen production, storage, 
conversion, and infrastructure technologies. The 2008 Budget completes 
the President's five-year, $1.2 billion commitment announced in his 2003 
State of the Union address, but work will continue on the many technical 
challenges that remain.
  Biomass R&D: The Biomass R&D Act of 2000 established the Biomass R&D 
Board to guide interagency coordination and bring coherence to Federal 
strategic planning on biomass-related issues. Since 2002, the 
Departments of Agriculture and Energy have been preparing joint annual 
reports on a subset of coordinated biomass activities. In 2006, the 
Board began preparation of an interagency coordination and planning 
document that will be reviewed by the National Academy of Sciences. In 
addition to assessing the goals and plans for interagency biomass 
research, the Academy will be tasked with considering economic and other 
impacts of increased biomass utilization under various energy price and 
policy scenarios. Additional information on the Biomass R&D Board is 
available online at www.biomass.govtools.us.

                     Stimulating Private Investment

  Along with direct spending on R&D, the Federal Government has sought 
to stimulate private R&D investment through incentives in the Internal 
Revenue Code. A long-standing credit, which had provided a 20-percent 
tax credit for private research and experimentation expenditures above a 
certain base amount, was extended for two years through the end of 2007 
and enhanced through the Tax Relief and Health Care Act of 2006. The 
Administration proposes making the enhanced Research and Experimentation 
tax credit permanent starting in 2008. The proposed extension will cost 
$42 billion over the period from 2008 to 2012. In addition, a permanent 
tax provision lets companies deduct, up front, the costs of certain 
kinds of research and experimentation, rather than capitalize these 
costs. Also, equipment used for research benefits from relatively rapid 
tax depreciation allowance.

                          IV. FEDERAL R&D DATA

                           Federal R&D Funding

  R&D is the collection of efforts directed towards gaining greater 
knowledge or understanding and applying knowledge toward the production 
of useful materials, devices, and methods. R&D investments can be 
characterized as basic research, applied research, development, R&D 
equipment, or R&D facilities, and the Office of Management and Budget 
has used those or similar categories in its collection of R&D data since 
1949.
  Basic research is systematic study directed toward a fuller knowledge 
or understanding of the fundamental aspects of phenomena and of 
observable facts without specific applications towards processes or 
products in mind. Basic research, however, may include activities with 
broad applications in mind.
  Applied research is systematic study to gain knowledge or 
understanding necessary to determine the means by which a recognized and 
specific need may be met.
  Development is systematic application of knowledge or understanding, 
directed toward the production of useful materials, devices, and systems 
or methods, including design, development, and improvement of prototypes 
and new processes to meet specific requirements.
  Research and development equipment includes acquisition or design and 
production of movable equipment, such as spectrometers, research 
satellites, detectors, and other instruments. At a minimum, this 
category should include programs devoted to the purchase or construction 
of R&D equipment.
  Research and development facilities include the acquisition, design, 
and construction of, or major repairs or alterations to, all physical 
facilities for use in R&D activities. Facilities include land, 
buildings, and fixed capital equipment, regardless of whether the 
facilities are to be used by the Government or by a private 
organization, and regardless of where title to the property may rest. 
This category includes such fixed facilities as reactors, wind tunnels, 
and particle accelerators.
  There are over twenty Federal agencies that fund R&D in the U.S. The 
nature of the R&D that these agencies fund depends on the mission of 
each agency and on the role of R&D in accomplishing it. Table 5-1 shows 
agency-by-agency spending on basic and applied research, development, 
and R&D equipment and facilities.
  The ``Federal Science and Technology'' (FS&T) budget (shown in Table 
5-2) highlights the creation of new knowledge and technologies more 
consistently and accurately than the overall R&D data. The FS&T budget 
emphasizes research; does not count funding for defense development, 
testing, and evaluation; and totals less than half of Federal R&D 
spending. The 2008 Budget requests $61 billion for FS&T.

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                                                      Table 5-1.  FEDERAL RESEARCH AND DEVELOPMENT
                                                     (Budget authority, dollar amounts in millions)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                               Dollar         Percent
                                                                                          2006        2007         2008        Change:     Change:  2007
                                                                                         Actual     Estimate     Proposed   2007 to 2008      to 2008
--------------------------------------------------------------------------------------------------------------------------------------------------------
By Agency
  Defense............................................................................     73,723       77,881       78,862           981              1%
  Health and Human Services..........................................................     28,531       28,743       29,027           284              1%
  NASA...............................................................................     11,317       11,613       12,428           815              7%
  Energy.............................................................................      8,596        8,389        9,224           835             10%
  National Science Foundation........................................................      4,227        4,232        4,880           648             15%
  Agriculture........................................................................      2,438        2,316        2,010          -306            -13%
  Commerce...........................................................................      1,090          920        1,088           168             18%
  Homeland Security..................................................................      1,455        1,079        1,068           -11             -1%
  Veteran Affairs....................................................................        824          818          822             4              0%
  Transportation.....................................................................        820          752          812            60              8%
  Interior...........................................................................        639          636          621           -15             -2%
  Environmental Protection Agency....................................................        622          567          562            -5             -1%
  Other..............................................................................      1,250        1,223        1,251            28              2%
                                                                                      ------------------------------------------------------------------
  Total..............................................................................    135,532      139,169      142,655         3,486              3%
 
Basic Research
  Defense............................................................................      1,457        1,565        1,428          -137             -9%
  Health and Human Services..........................................................     15,546       15,545       15,615            70              0%
  NASA...............................................................................      2,299        2,259        2,226           -33             -1%
  Energy.............................................................................      2,930        2,957        3,409           452             15%
  National Science Foundation........................................................      3,520        3,499        3,993           494             14%
  Agriculture........................................................................        853          799          771           -28             -4%
  Commerce...........................................................................        118          118          164            46             39%
  Homeland Security..................................................................         85          105          132            27             26%
  Veteran Affairs....................................................................        343          328          330             2              1%
  Transportation.....................................................................  .........  ...........  ...........  ............             N/A
  Interior...........................................................................         42           42           39            -3             -7%
  Environmental Protection Agency....................................................        105           94           94  ............  ..............
  Other..............................................................................        158          163          170             7              4%
                                                                                      ------------------------------------------------------------------
    Subtotal.........................................................................     27,456       27,474       28,371           897              3%
 
Applied Research
  Defense............................................................................      4,948        5,330        4,357          -973            -18%
  Health and Human Services..........................................................     12,827       12,964       13,237           273              2%
  NASA...............................................................................      1,680        1,010        1,127           117             12%
  Energy.............................................................................      2,700        2,707        2,869           162              6%
  National Science Foundation........................................................        286          281          380            99             35%
  Agriculture........................................................................      1,149        1,117          984          -133            -12%
  Commerce...........................................................................        729          617          696            79             13%
  Homeland Security..................................................................        662          518          533            15              3%
  Veteran Affairs....................................................................        435          442          444             2              0%
  Transportation.....................................................................        497          501          541            40              8%
  Interior...........................................................................        546          534          525            -9             -2%
  Environmental Protection Agency....................................................        400          369          364            -5             -1%
  Other..............................................................................        590          549          581            32              6%
                                                                                      ------------------------------------------------------------------
    Subtotal.........................................................................     27,449       26,939       26,638          -301             -1%
 
Development
  Defense............................................................................     67,154       70,926       72,873         1,947              3%
  Health and Human Services..........................................................         22           22           22  ............  ..............
  NASA...............................................................................      5,141        6,451        6,707           256              4%
  Energy.............................................................................      1,939        1,843        1,891            48              3%
  National Science Foundation........................................................  .........  ...........  ...........  ............             N/A
  Agriculture........................................................................        164          158          156            -2             -1%
  Commerce...........................................................................         93           55           72            17             31%
  Homeland Security..................................................................        659          325          269           -56            -17%
  Veteran Affairs....................................................................         46           48           48  ............  ..............
  Transportation.....................................................................        305          232          252            20              9%
  Interior...........................................................................         46           53           55             2              4%
  Environmental Protection Agency....................................................        117          104          104  ............  ..............
  Other..............................................................................        464          455          454            -1              0%
                                                                                      ------------------------------------------------------------------
    Subtotal.........................................................................     76,150       80,672       82,903         2,231              3%
 
Facilities and Equipment
  Defense............................................................................        164           60          204           144            240%
  Health and Human Services..........................................................        136          212          153           -59            -28%

[[Page 52]]

 
  NASA...............................................................................      2,197        1,893        2,368           475             25%
  Energy.............................................................................      1,027          882        1,055           173             20%
  National Science Foundation........................................................        421          452          507            55             12%
  Agriculture........................................................................        272          242           99          -143            -59%
  Commerce...........................................................................        150          130          156            26             20%
  Homeland Security..................................................................         49          131          134             3              2%
  Veteran Affairs....................................................................  .........  ...........  ...........  ............             N/A
  Transportation.....................................................................         18           19           19  ............             N/A
  Interior...........................................................................          5            7            2            -5            -71%
  Environmental Protection Agency....................................................  .........  ...........  ...........  ............             N/A
  Other..............................................................................         38           56           46           -10            -18%
                                                                                      ------------------------------------------------------------------
    Subtotal.........................................................................      4,477        4,084        4,743           659             16%
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 53]]


                                Table 5-2.  FEDERAL SCIENCE AND TECHNOLOGY BUDGET
                                 (Budget authority, dollar amounts in millions)
----------------------------------------------------------------------------------------------------------------
                                                                                              Dollar    Percent
                                                           2006        2007         2008     Change:    Change:
                                                          Actual   Estimate \1\   Proposed   2007 to    2007 to
                                                                                               2008       2008
----------------------------------------------------------------------------------------------------------------
By Agency
 
National Institutes of Health \2\.....................     28,242       28,269      28,700        431         2%
 
NASA \3\..............................................      7,670        7,173       7,124        -49        -1%
  Science.............................................      5,110        5,330       5,516        186         3%
  Aeronautics.........................................        893          724         554       -170       -23%
  Exploration Systems \4\.............................      1,452          921         856        -65        -7%
  Innovative Partnerships.............................        215          198         198  .........  .........
 
Energy \5\............................................      5,625        6,186       6,906        720        12%
  Science Programs....................................      3,596        4,102       4,398        296         7%
  Electricity Transmission & Distribution.............        136           96          86        -10       -10%
  Nuclear Energy......................................        416          560         811        251        45%
  Energy Efficiency and Renewable Energy Resources \6\        896          963       1,047         84         9%
  Fossil Energy R&D \7\...............................        581          465         564         99        21%
 
National Science Foundation...........................      5,581        6,020       6,429        409         7%
 
Defense...............................................      6,405        6,895       5,785     -1,110       -16%
  Basic Research......................................      1,457        1,565       1,428       -137        -9%
  Applied Research....................................      4,948        5,330       4,357       -973       -18%
 
Agriculture...........................................      2,170        1,921       1,934         13         1%
  CSREES Research and Education \8\...................        675          569         566         -3        -1%
  Economic Research Service...........................         75           83          83  .........  .........
  Agricultural Research Service \9\...................      1,141        1,001       1,022         21         2%
  Forest Service: Forest and Rangeland Research.......        279          268         263         -5        -2%
 
Interior (USGS).......................................        965          945         975         30         3%
 
Commerce..............................................        939          869         944         75         9%
  NOAA: Oceanic & Atmospheric Research................        369          338         358         20         6%
  NIST Intramural Research and Facilities.............        570          531         586         55        10%
 
Veterans Affairs \10\.................................        769          765         822         57         7%
 
Environmental Protection Agency \11\..................        761          816         781        -35        -4%
 
Transportation........................................        563          598         570        -28        -5%
  Highway research: Federal Highway Administration....        426          468         430        -38        -8%
  Federal Aviation Administration: Research,                  137          130         140         10         8%
   Engineering, and Development.......................
 
Education.............................................        342          342         342  .........  .........
  Special Education Research and Innovation...........         72           72          72  .........  .........
  National Institute on Disability and Rehabilitation         107          107         107  .........  .........
   Research...........................................
  Research, Development, and Dissemination \12\.......        163          163         163  .........  .........
                                                       ---------------------------------------------------------
  Total...............................................     60,032       60,799      61,312        513         1%
----------------------------------------------------------------------------------------------------------------
\1\ The amounts included as 2007 Estimates in this table reflect the 2007 Budget levels, with the exception of
  the numbers for the Department of Defense, which are the enacted levels.
\2\ In 2006, the Department of Health and Human Services allocated an additional $18 million to NIH for Pandemic
  Influenza research from the Department of Defense Emergency Supplemental Appropriations to Address Hurricanes
  in the Gulf of Mexico, and Pandemic Influenza Act, 2006.
\3\ Due to recent changes in NASA's approach to budgeting overhead costs, 2008 funding levels are not comparable
  to 2006 and 2007 levels.
\4\ Includes Exploration Technology Development, the Human Research Program, and the Lunar Precursor Robotic
  Program.
\5\ Data do not reflect actual transfers to Science Programs from other Department of Energy R&D programs to
  support the Small Business Innovation Research and the Small Business Technology Transfer programs.
\6\ In 2006, Congress merged the Energy Supply and Energy Conservation accounts. The amount reported under the
  new Energy Efficiency and Renewable Energy Resources line within this account reflects a combination of the
  former Energy Conservation line item (excluding Weatherization and State grants) and the Renewables line item.
\7\ Excludes funding for the Alaska Natural Gas Pipeline project.
\8\ Includes the appropriation of earnings from the Native American Endowment Fund, but not the appropriation to
  the Endowment's principal.
\9\ Excludes building and facilities. Excludes $6 million transfer to the account in 2006.
\10\ Includes the medical care and prosthetic research appropriation and VA medical care support transfer to
  research.
\11\ Science and Technology, plus superfund transfer.
\12\ Does not include funding for Regional Educational Labs.


[[Page 54]]


                                              Table 5-3.  AGENCY DETAIL OF SELECTED INTERAGENCY R&D EFFORTS
                                                     (Budget authority, dollar amounts in millions)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                               Dollar         Percent
                                                                                         2006        2007          2008        Change:     Change:  2007
                                                                                        Actual   Estimate \1\    Proposed   2007 to 2008      to 2008
--------------------------------------------------------------------------------------------------------------------------------------------------------
Networking and Information Technology R&D \2\
  Defense...........................................................................      1,106         1,046        1,027           -19             -2%
  National Science Foundation.......................................................        812           904          994            90             10%
  Health and Human Services \3\.....................................................        486           541          463           -78            -14%
  Energy............................................................................        282           389          404            15              4%
  National Aeronautics and Space Administration.....................................         78            82           85             3              4%
  Commerce..........................................................................         64            73           73  ............             N/A
  Environmental Protection Agency...................................................          6             6            6  ............             N/A
  National Archives and Records Administration......................................          4             4            5             1             25%
                                                                                     -------------------------------------------------------------------
    Total...........................................................................      2,838         3,045        3,057            12              0%
 
National Nanotechnology Initiative
  National Science Foundation.......................................................        360           373          390            17              5%
  Defense...........................................................................        424           417          375           -42            -10%
  Energy............................................................................        231           293          332            39             13%
  Health and Human Services \4\.....................................................        196           175          208            33             19%
  Commerce (NIST)...................................................................         78            89           97             8              9%
  National Aeronautics and Space Administration.....................................         50            25           24            -1             -4%
  Environmental Protection Agency...................................................          5             9           10             1             11%
  Agriculture.......................................................................          6             7            8             1             14%
  Transportation....................................................................          1             1            1  ............             N/A
  Justice...........................................................................  .........             1            1  ............             N/A
  Homeland Security.................................................................          2             1            1  ............             N/A
                                                                                     -------------------------------------------------------------------
    Total...........................................................................      1,353         1,391        1,447            56              4%
 
Climate Change Science Program
  National Aeronautics and Space Administration \5\.................................      1,045           981          871          -110            -11%
  National Science Foundation.......................................................        197           205          208             3              1%
  Commerce (NOAA)...................................................................        157           173          174             1              1%
  Energy............................................................................        130           126          130             4              3%
  Agriculture.......................................................................         61            60           59            -1             -2%
  National Institutes of Health.....................................................         50            57           50            -7            -12%
  Interior (USGS)...................................................................         27            26           27             1              4%
  Environmental Protection Agency...................................................         19            18           18  ............             N/A
  Smithsonian.......................................................................          6             6            6  ............             N/A
  Transportation....................................................................          1             1            1  ............             N/A
  U.S. Agency for International Development \6\.....................................         13            14  ...........           N/A             N/A
                                                                                     -------------------------------------------------------------------
    Total...........................................................................      1,706         1,667        1,544          -123             -7%
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ The amounts included as 2007 Estimates in these tables reflect the 2007 Budget levels, with the exception of the numbers for the Department of
  Defense and the Department of Homeland Security, which are the enacted levels.
\2\ DHS NITRD funding information is not yet available.
\3\ Includes funds from offsetting collections for the Agency for Healthcare Research and Quality.
\4\ Includes funds from both the National Institutes of Health and National Institute of Occupational Safety and Health.
\5\ Beginning with the 2007 Estimate, NASA is no longer counting its Ground Network and Research Range within its CCSP totals.
\6\ USAID CCSP funding information for 2008 is not yet available.